Converging Tides: AI and 5G-Advanced Shape the Future of Mobile

Earlier this month, I had the privilege of attending MWC Shanghai, a premier event that consistently provides a vivid snapshot of the mobile industry’s evolving landscape. As expected, the dominant themes echoed the wider industry’s focus: the pervasive influence of AI, the continued evolution of 5G into 5G-Advanced, and the burgeoning array of applications fuelled by these advanced network capabilities.

AI’s Indispensable Role in Network Evolution

The conversation about AI in the mobile industry has demonstrably shifted. The initial debate of whether to develop AI capabilities independently or through partnerships has largely been settled. Most network operators have wisely chosen collaboration, recognizing that the sheer pace of technological advancements, delivery demands and overall market change necessitate a collective approach. Strategic alliances with AI specialists, manufacturers and other key players are crucial. The focus has moved beyond mere adoption to the more pressing question of how operators can extract maximum value from their investments in 5G through the intelligent application of AI.

AI is no longer just an add-on; it’s becoming the core intelligence behind network efficiency and customer experience. Operators are increasingly using AI to automate routine tasks, optimize network performance in real time and enhance operational efficiency. For instance, AI-driven network optimization can predict congestion points, dynamically adjust network parameters, and detect and resolve faults significantly faster than manual processes. This translates directly into reduced operational costs and improved service reliability, vital for complex 5G infrastructures.

Furthermore, AI’s deep convergence with the internet of things (IoT) is creating what many refer to as “AI-IoT,” a new gateway to an intelligent world. AI is powering networks to maximize spectrum utilization, energy efficiency and overall operations and maintenance. There are three elements that make these connections intelligent. Firstly, all-scenario IoT expands connections to enable the collection of all production data. Secondly, 5G-Advanced networks transport data from the physical world to models in the cloud in real time. Thirdly, industry-specific and scenario-specific models transform core industry production processes by making applications intelligent.

The Power of Partnership

Making the most of 5G-Advanced is a team sport. The intricate nature of this technology, combined with the rapid evolution of AI, demands robust collaboration. Operators must forge strong alliances with hardware manufacturers, specialized AI developers, cloud service providers and public sector entities. These partnerships can take various forms — public, private, or a hybrid of both — and will be instrumental in creating the solutions that unlock the full potential of 5G-Advanced.

Establishing and maintaining these relationships will need significant effort and a clear understanding of shared objectives, but the long-term benefits are substantial. The advent of 4G and smartphones paved the way for disruptive companies like Uber and Spotify, new business models, and new revenue streams for network operators. The combined force of 5G-Advanced and AI promises an even more profound impact, fostering an ecosystem of innovation that extends far beyond traditional mobile services.

Several examples illustrate the power of such collaborations. Deutsche Telekom’s partnership with IBM’s Concert platform has shown significant reductions in patching time for critical vulnerabilities, highlighting how AI can streamline cybersecurity and operational efficiency.

China Mobile, China Unicom, and AIS in Thailand have deployed Huawei’s AI-powered network solution, called IntelligentRAN. It incorporates many intelligent operations and maintenance processes that feature support for Level 4 network autonomy. The company claims it delivers a superior user experience through adaptiveness and results in lower operating expenses.

Similarly, Nokia’s MantaRay Cognitive Self-Organizing Network has shown improvements in network performance and reduced energy consumption for customers like STC Group, thanks to AI-driven optimization.

Unlocking Enterprise Opportunities

The enterprise market presents rich opportunities for the convergence of 5G-Advanced and AI. Cloud services, cybersecurity and IoT are fertile ground for innovation and revenue generation. However, a fascinating emerging area is the “low-altitude economy”. This concept exploits the unique characteristics of drones, robotics and the ultralow latency and high bandwidth of 5Gfor a myriad of applications.

Drones equipped with AI-powered cameras can conduct highly accurate inspections of infrastructure; they can deliver packages in urban areas or perform precision agricultural tasks. Robotics, powered by 5G for real-time communication and AI for decision-making, could revolutionize manufacturing and logistics — and even healthcare through remote ultrasound and automated patient care.

These applications have moved beyond theoretical concepts and are becoming tangible realities, promising greater efficiency, safety and new service models. For instance, the low latency and high bandwidth offered by 5G-Advanced are critical enablers for high-precision sensing and decision-making in manufacturing, enabling sensing-to-execution cycles that minimize production risks and maximize efficiency.

Beyond the low-altitude economy, 5G-Advanced and AI will accelerate digital transformation in various industries. From smart cities that optimize traffic flow and energy consumption, to augmented reality (AR) and virtual reality (VR) solutions for industrial training and design, potential applications of 5G-Advanced and AI in enterprises are virtually limitless. The ability to deploy computing capabilities and AI closer to the edge of the network, coupled with network slicing to provide dedicated and guaranteed performance, will be game-changers for mission-critical enterprise applications.

The Consumer Conundrum

Although the path to enterprise revenue streams appears relatively clear, generating new revenue from consumers presents a more nuanced challenge. Currently, 5G, in its basic form, doesn’t always offer a compelling enough value proposition over 4G to prompt widespread consumer demand. The current perception often boils down to “faster downloads,” which, while appreciated, aren’t always enough to justify a higher price.

To unlock revenue from consumers, operators must shift their focus from simply selling connectivity to crafting attractive, differentiated experiences that highlight the unique benefits of 5G-Advanced and AI. This means developing new tariffs that reflect value beyond raw speed and building immersive applications that are only possible with ultralow latency, massive connectivity and AI.

As part of its moves to use AI to create personalized services for consumers, China Mobile has implemented a series of enhancements to traditional voice calls using the New Calling solution developed in conjunction with Huawei. The enhancements include real-time translations, visualized voice calls and “fun” calling, in which users appear as avatars in a video call, for example. The new AI features attracted an additional 700,000 subscribers and boosted average revenue per user by about six yuan. The next phases involve personalized AI agents and dynamic network slicing to create tiered plans for content creators.

In cloud gaming, 5G-Advanced’s low latency allows for console-quality gaming on mobile devices without the need for powerful local hardware. Mobile AI agents on devices are poised to transform user interaction, providing highly personalized services and experiences that go far beyond current smartphone capabilities. Operators could also offer “quality on demand” APIs, allowing developers to tailor connectivity for specific applications like high-definition live streaming or virtual concerts, with consumers paying a small premium for these enhanced experiences.

The challenge lies in communicating this value to consumers effectively. Operators will have to adjust their marketing strategies, focusing on transformative experiences rather than technical specifications. Bundling 5G-Advanced with exclusive content, premium cloud services or innovative AR and VR applications could provide a significant boost to revenue. Operators also need to educate consumers about the true “worth” of extra connectivity and low latency, demonstrating how these capabilities can enhance their daily lives.

The Road Ahead

My week at MWC Shanghai provided an invaluable glimpse of the trends that will shape the mobile industry in the coming years. The symbiotic relationship between AI and 5G-Advanced isn’t just a technological evolution; it’s a fundamental shift that will mean new business models, strategic partnerships and a renewed focus on delivering real value to enterprises and consumers.

We can expect accelerated commercial deployment of 5G-Advanced, with AI playing an increasingly central role in reshaping networks, operations and business strategies. Although the expected trends like enterprise digital transformation and advanced consumer experiences will certainly drive growth, the true beauty of innovation lies in the unforeseen.

It’s highly probable that the convergence of these powerful technologies will give rise to entirely new applications, services and industries that we can only begin to imagine. Just as no one fully predicted the scale of the app economy facilitated by 4G, the combination of 5G-Advanced and AI holds the promise of revolutionary developments. Keeping abreast of these themes, and remaining open to the unexpected, will be crucial for navigating and thriving in the rapidly evolving mobile landscape.